Magnesium Market in Jan.2023
January 5, 2023
The two most difficult tests in life: patience to wait for the opportunity to come, and courage to face all the opportunities! In the new year, let's ride the wind and waves with the magnesium market and move forward bravely!
On the second working day after the festival, the domestic magnesium ingot market continued to maintain a steady operation. According to the market, the quotation of mainstream factories in Fugu today is 21600 yuan/ton in tax inclusive spot exchange. Some factories can negotiate with each other. The market transaction price is 21500-21600 yuan/ton in tax inclusive spot exchange. The market is basically the same as before the festival. Market quotations in other regions are also relatively stable
From the current market situation, the supply and demand sides are basically in a stalemate game. On the supply side, the current market inventory is generally stable, but the total amount is still high. Some factories have recently reported that they have reduced their production. Due to cost pressure and other factors, they have a strong desire to stabilize prices, and there may be limited space for subsequent magnesium price reduction. On the demand side, downstream customers are mainly engaged in rigid demand procurement, and will wait and see after the festival. The market acceptance of high prices is not high.
Due to the early Spring Festival this year, some factories are expected to have the demand for funds to be returned by the end of the year; In addition, some external orders will be delivered before the Spring Festival. In combination with the continuous strengthening of the current RMB exchange rate, the purchase price of these orders is under great pressure, or they will find appropriate price nodes for replenishment and delivery. It is estimated that there may be a point of intersection between supply and demand at the beginning of the next week, and both parties may reach a consensus at a certain price node.
On the whole, the supply and demand of magnesium ingot market is slightly deadlocked in the short term, and the price of magnesium ingot has no significant fluctuation for the time being. After the festival, the market has just resumed, and the lower reaches are in a cautious mood, paying attention to the market transactions in the later part of this week.